Wednesday, June 24, 2009

What do you do with the Money you Make?

"We think we own things, but the reality is, our things own us". - Joseph B. Wirthlin

You may be thinking what does this mean, or how does this relate to me?

The title of this blog is "Make Money and Wealth". This post is going to focus on the wealth point. There are so many ways to make money and even more people saying they know how to do it. One of the things that I have learned is that making money seems to be relatively easy. Keeping it, that is the real test.

We live in a world where things have and continue to speed up. This has been fantastic in so many ways. But with that, many people expect to have everything, now. And sometimes this can result in excessive debt which is a major drain of money (interest) and cause of stress.

If you over commit you can become imprisoned by the things you have purchased. Every waking hour might be spent worrying on how to make the next payment. It might even keep you up at night, niggle at you, and then there are the dreaded credit card bills! Quite often this can cause sickness and strain on relationships and takes up a lot of your money!

So what's the solution to this? One of the rules to wealth - SPEND LESS MONEY THEN YOU EARN.

Also, prioritize a portion of your money to giving, savings and investments. The rest can be used to pay the bills and buy those things you've been wanting!

This way, we set ourselves up for success so that as we make more money, we manage our money and actually have something to show for it. This could be savings, investment or paying down mortgages and other loans more quickly, all of which equal lifestyle! Which is why we make money anyway, isn't it?

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